OPEX finance model is a way of financing a solar project, where the investor invests tin the solar plant erection and the client pays for the power he consumes from the Solar plant under a pre agreed upon contract, known as Power Purchase Agreement (PPA).
Overview of PPA Financing:
The Power purchase agreement (PPA) covers the terms of contract of the solar plant and the roles of the parties involved in it, namely the investor, the installer and the end client. VEMC is the designated installer in these agreements for most of the clients. The investorinvests in the solar plant and the client agrees under contract to buy the all or part of the power generated from the plant under a rate which may be fixed or changing with time.
M/s VEMC will install the plant as per the approvals of the investors and client and take care of the Annual maintenance of the plant to ensure the plant output. The client can move out of the agreement after a set number of years against a payment agreed in the contract or can buy the plant directly from the investor if he chooses too as per the contract conditions.